Crypto sentiment platform Santiment has indicated that Ether’s price might increase by nearly 7% in the short term. The current subdued stablecoin yields suggest that the crypto market isn’t fully overheated just yet.
In a note released on Saturday, Santiment mentioned that yields are currently low, hovering around 4%. This points to the market not having reached a significant ceiling, potentially allowing for further upward movement in Ether (ETH), which may soon approach the $3,200 resistance level.
As reported by CoinMarketCap, this would imply an increase of roughly 6.7% from its current price of $2,991.
Santiment also noted that stablecoin yields in various lending protocols, considered a “measure of market health,” are presently low, with averages between 3.9% and 4.5% across major platforms. They explained that a rise in yields generally signifies heightened speculative leverage, a trend often seen before significant peaks in the crypto market.
Spot Ether Shows Signs of Recovery After Market Decline
Recently, Ether’s price has struggled. Over the last 30 days, it has dropped 21.32% due to a broader market downturn that started after a $19 billion liquidation event on October 10. This event coincided with the announcement of 100% tariffs on Chinese goods by US President Donald Trump.
On a more positive note, crypto analyst Matthew Hyland pointed out on Saturday that the ETH-BTC weekly trend is approaching a bullish ribbon reversal, a development not seen since July 2020.
Additionally, the Spot Ether ETF showed strong performance this week, with net inflows of $312.6 million following three weeks of significant withdrawals.
Market Sentiment Reflects Improvement
Across the broader crypto market, sentiment is appearing to improve as well. Traditionally, November is a strong month for Bitcoin, yet this year has seen the Crypto Fear & Greed Index remain in “extreme fear” for 18 days before finally moving to a “fear” reading on Saturday, indicating some stabilization.
Looking to the future, historical data from CoinGlass shows that December typically yields an average return of 6.85% for Ether since 2013. Although October and November tend to be strong months for Bitcoin, the current year’s performance has led many in the crypto community to reconsider the reliability of these seasonal trends.
